The Family and Medical Leave Insurance Program (FAMLI) division of the Colorado Department of Labor and Employment has issued a reminder that missed FAMLI employee payroll deductions cannot be made retroactively.
The Details:
The reminder states that if an employer failed to deduct the employee share of the premium from wages paid during any pay period after January 1, 2023, the employer will be considered to have elected to pay that portion of the employee’s share.
7 Colo. Code Regs. § 1107-1-1.5 states in part as follows:
“Employers ability to deduct premiums from employees 1. An employer required to remit premiums pursuant to C.R.S. 8-13.3-507 may not deduct more than the maximum allowable employee share of the premium from wages paid for a pay period.(a) If an employer fails to deduct the maximum allowable employee share of the premium from wages paid for a pay period, the employer is considered to have elected to pay that portion of the employee share under C.R.S. 8-13.3-507, and the employer cannot deduct this amount from a future paycheck of the employee for a different pay period.”
However, where an employee has insufficient wages to cover their share of FAMLI premiums for the pay period, an employer is allowed to deduct the uncollected employee portion from one or more future pay period paychecks.
Next Steps:
Should an employer fail to deduct the employee’s share of the FAMLI premium (except in cases where the employee had insufficient wages to cover their share), they are considered to have elected to pay the employee’s premium share and may not deduct wages from any future paycheck to make up the missed FAMLI deduction.
Have Questions?
Please contact your dedicated service professional with any questions.